Grace Enfield, Content Writer
Veterans can get many different kinds of loans, like personal loans, mortgages, auto loans and home equity loans. Plus, there are some specific types of home loans that only veterans can get through the U.S. Department of Veterans Affairs, like a VA-backed purchase loan or a VA cash-out refinance loan.
Keep in mind that conventional loans do not offer special deals to veterans. There are a few lenders that cater specifically to military personnel and their families, though, such as USAA and Navy Federal Credit Union.
8 Kinds of Loans Veterans Can Get
Personal loans can be used for almost anything, from debt consolidation to home improvements. The best personal loans offer large loan amounts, low minimum APRs and long repayment periods.
Check out the best personal loans for veterans.
Mortgages help borrowers finance the purchase of a house. You can live in the home while the mortgage is being paid off, but if you don’t repay it, the lender can reclaim the home.
Auto loans allow you to finance the purchase of a new or used car. However, the loan is secured by the vehicle, so the lender can repossess the vehicle if you don’t repay the loan.
Home equity loans
Home equity loans let you borrow against your home’s equity, which is the home’s value minus the balance that’s left on the mortgage. You will need to use your home as collateral, though.
VA-backed purchase loans
VA-backed purchase loans are mortgages that offer veterans better terms than a conventional mortgage. You can get one of these loans if you meet the minimum active-duty service requirement, have not received a dishonorable discharge, meet the credit score and income requirements (along with other requirements), and live in the home purchased with the loan.
VA interest rate reduction refinance loan
A VA interest rate reduction refinance loan helps veterans reduce the cost of their monthly payments on an existing VA purchase loan. To qualify for one of these loans, you need to have a VA-backed home loan, use the refinance loan on the existing purchase loan and certify that you currently or used to live in the home that’s covered by the purchase loan.
VA cash-out refinance loan
A VA cash-out refinance loan lets you refinance your current mortgage and take out cash from your home’s equity. You can get one of these loans if you live in the home you’re refinancing, meet the credit score and income requirement (among other requirements), meet the minimum active-duty service requirement and have not received a dishonorable discharge.
VA Native American direct loan
A VA Native American direct loan lets Native American veterans or their spouses get a loan to purchase or improve a home on federal trust land. To be eligible for one of these loans, your tribal government must have an agreement with the VA on how the program will work on trust lands, you must have a valid VA-backed home loan Certificate of Eligibility, and you must meet the VA’s credit standards. You’ll also need to have enough income to afford the loan and live in the home you plan on using the loan for.
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